Nikkei Stock Index in Japan Drops Over 4,000 Points, Largest Decline in History

Japan's benchmark Nikkei stock index plunged over 4,000 points in what is being reported as the largest decline in its history. media organization 225 stock index plunged as much as 8.1% early Monday, August 5 extending sell-offs that shook world markets last week as worries flared over the state of the US economy.

At one point, the Nikkei shed more than 2,900 points, to 32,991.88. The market's broader TOPIX index also fell 8% as selling picked up in the afternoon. A report showing hiring by US employers slowed last month by much more than expected has convulsed financial markets, vanquishing the euphoria that had taken the Nikkei to all-times highs of over 42,000 in recent weeks.

The Nikkei 225 dropped 5.8% on Friday and it is headed for its worst two-day decline ever. Its worst single-day rout was a plunge of 3,836 points, or 14.9 per cent, on a day dubbed “Black Monday” in October 1987. Share prices have fallen in Tokyo since the Bank of Japan raised its benchmark interest rate on Wednesday. The Nikkei is now at about the level it was a year ago.